PetroBakken Energy Ltd.
TSX : PBN

PetroBakken Energy Ltd.

March 10, 2010 08:12 ET

PetroBakken Updates Strategic Acquisition of Cardium Focused Private Oil and Gas Company

CALGARY, ALBERTA--(Marketwire - March 10, 2010) - PetroBakken Energy Ltd. ("PetroBakken") (TSX:PBN), a 64% owned subsidiary of Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG), is pleased to provide an update regarding the acquisition agreement (the "Agreement") previously announced on March 2, 2010 between PetroBakken and Rondo Petroleum Inc. ("Rondo"), a private oil and gas company that has focused assets in the west Pembina Cardium play.

PetroBakken has been informed by Rondo that they have received signed shareholder resolutions approving the Agreement from 100 percent of their shareholders, signifying approval of the acquisition of Rondo by PetroBakken. With this receipt of unanimous Rondo shareholder approval, PetroBakken plans to close the acquisition of Rondo on March 12, 2010. Closing remains subject to certain conditions, including the receipt of court approval.

Pursuant to the Agreement, PetroBakken has agreed to acquire all of the outstanding shares of Rondo (the "Transaction"). Consideration for the Transaction is comprised of $88.7 million cash, the issuance of approximately 5.5 million PetroBakken shares and the assumption of Rondo's debt. The Transaction will increase PetroBakken's operational presence and drilling inventory within the exciting Cardium light oil resource play and complements our strong growth platform centered on high-netback light oil resource plays. 

PetroBakken Energy Ltd. is a premier light oil production company combining, high growth, long-life Bakken reserves and production with legacy conventional light oil assets, delivering industry leading operating netbacks, strong cash flows and production growth. PetroBakken has a multi-year inventory of Bakken and light oil development locations, along with significant future development opportunities in the Horn River and Montney gas resource plays in northeast BC and the Cardium in Alberta. Our strategy is to deliver accretive production and reserves growth, along with an attractive dividend yield.

Forward-Looking Statements. Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to the Agreement, potential reserves, production, and drilling locations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the Agreement, general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling; recompletions and related activities; timing and rig availability, the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by PetroBakken that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, PetroBakken assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

Contact Information

  • PetroBakken Energy Ltd.
    John D. Wright
    Chairman of the Board and Chief Executive Officer
    403.750.4400
    or
    PetroBakken Energy Ltd.
    R. Gregg Smith
    President and Chief Operating Officer
    403.750.4400
    or
    PetroBakken Energy Ltd.
    Corey C. Ruttan
    Executive Vice President, Chief Financial Officer
    and Director
    403.750.4400
    or
    PetroBakken Energy Ltd.
    Peter D. Scott
    Vice President, Finance
    403.750.4400
    or
    PetroBakken Energy Ltd.
    Bill A. Kanters
    Vice President Business Development and Corporate Planning
    403.750.4400
    ir@petrobakken.com
    www.petrobakken.com